ERII (Energy Recovery) ROCE %: -22.99% (As of Mar. 2026)

What is Energy Recovery ROCE %?

Energy Recovery ERII -1.19% 71 ROCE % is -22.99% as of Mar. 2026. GuruFocus rates ERII with a GF Score™ of 71/100 and a GF Value™ of $14.81 (Significantly Undervalued). The stock has 5 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Energy Recovery's annualized ROCE % for the quarter that ended in Mar. 2026 was -22.99%.

Energy Recovery (NAS:ERII) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Energy Recovery ROCE % Related Terms

Energy Recovery ROCE % Historical Data

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The historical data trend for Energy Recovery's ROCE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Energy Recovery ROCE % Chart

Energy Recovery Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Dec25

ROCE %

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7.23

12.65

8.86

9.85

11.17

Energy Recovery Quarterly Data
	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24	Mar25	Jun25	Sep25	Dec25	Mar26
ROCE %	Get a 7-Day Free Trial															-22.56	2.95	7.67	61.78	-22.99

71GF Score

Energy Recovery Inc ERII

ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.

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Energy Recovery ROCE % Calculation

Energy Recovery's annualized ROCE % for the fiscal year that ended in Dec. 2025 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2025 )		(A: Dec. 2024 )		(A: Dec. 2025 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2025 )		(A: Dec. 2024 )		(A: Dec. 2025 )
	=	24.202	/	( ( (242.792 - 23.428)	+	(231.514 - 17.354) )	/ 2 )
	=	24.202	/	( (219.364	+	214.16)	/ 2 )
	=	24.202	/	216.762
	=	11.17 %

Energy Recovery's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2026 )		(Q: Dec. 2025 )		(Q: Mar. 2026 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2026 )		(Q: Dec. 2025 )		(Q: Mar. 2026 )
	=	-46.644	/	( ( (231.514 - 17.354)	+	(208.988 - 17.351) )	/ 2 )
	=	-46.644	/	( ( 214.16	+	191.637 )	/ 2 )
	=	-46.644	/	202.8985
	=	-22.99 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

Frequently Asked Questions Learn more about ROCE % →

What does a ROCE % of -22.99% mean?

Energy Recovery (ERII) has a ROCE % of -22.99% as of Mar. 2026.

Is Energy Recovery's ROCE % too high?

Energy Recovery's current ROCE % is -22.99%. Overall, Energy Recovery has a GF Score™ of 71/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.

How does Energy Recovery's ROCE % compare to ARQ and FTEK?

Energy Recovery's ROCE % of -22.99% can be compared against companies in the Industrial Products industry. The industry median ROCE % is 7.10. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good ROCE % for an Industrial Products company?

The median ROCE % among Industrial Products companies is 7.10, based on 3,032 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.

What does a high ROCE % mean?

A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Industrial Products industry, the median ROCE % is 7.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Energy Recovery's current ROCE % is -22.99%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Energy Recovery stock overvalued right now?

Based on GuruFocus' analysis, Energy Recovery (ERII) is currently considered Significantly Undervalued. The stock's GF Value™ is $14.81, compared to a current price of $8.77 — trading 40.8% below its estimated fair value. The current ROCE % is -22.99%. Energy Recovery's overall GF Score™ is 71/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.

How is ROCE % calculated?

ROCE % is calculated from a company's financial statements. For Energy Recovery (ERII), the current ROCE % is -22.99% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Energy Recovery (ERII) Overvalued in 2026?

Based on GuruFocus' analysis, Energy Recovery stock appears to be undervalued. The current stock price of $8.77 is trading 40.8% below its estimated GF Value™ of $14.81. GuruFocus considers Energy Recovery to be Significantly Undervalued.

Key valuation signals for ERII:

ROCE %: -22.99%
GF Value™: $14.81 vs. price of $8.77 (40.8% below fair value)
GF Score™: 71/100 with 5 warning signs

No single metric tells the full story. See the ERII stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Energy Recovery Business Description

Industry Industrials Industrial Products

Comparable Companies ARQ FTEK BCHT SCWO CLIR TOMZ RAIN BNET LIQT CLWT VLTO SZSE:300390 ZWS TSE:6370 TSE:6368 OSTO:MTRS SHSE:600388 CECO HKSE:00586 TPE:6944

Other Exchanges 5E2:Germany

Address 1717 Doolittle Drive, San Leandro, CA, USA, 94577

Website https://www.energyrecovery.com

Energy Recovery Inc designs and manufactures energy-saving technologies. The firm uses its proprietary pressure exchanger technology to help customers in multiple industries improve their operations and lower their emissions. Using its proprietary technology, it offers energy recovery devices, including pressure exchangers, pumps, and turbochargers, mainly used for seawater desalination and wastewater treatment. Additionally, the company is involved in the development of emerging technologies, such as the PX G1300 used in industrial and commercial refrigeration applications. The firm's reportable operating segments are: Water, which generates maximum revenue, and Emerging Technologies. Geographically, it generates maximum revenue from the Middle East, and the rest from other markets.

71GF Score

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ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$8.77

Price

$14.81

GF Value

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